Key takeaways
- BTC is down 1% and is now trading below $104,300 per coin.
- The bearish performance comes after Bitcoin failed to overcome the $107k resistance level.
Bitcoin dips below $105k despite strong start to the week
Bitcoin, the leading cryptocurrency by market cap, has underperformed over the last 24 hours despite a positive start to the week. The coin is now trading above $104,300 after failing to overcome a key resistance level on Monday.
It now risks dropping below $104k despite growing institutional demand.
According to SoSoValue, US-listed spot Bitcoin ETFs recorded a modest inflow of $1.15 million on Monday, ending the recent streak of withdrawals totaling $1.22 billion spanning over six days. If the inflow trend intensifies, it could serve as the momentum needed for BTC to extend its ongoing price recovery.
In addition to that, Glassnode reported on Monday that Bitcoin’s price action is beginning to stabilize, showing signs of a potential local bottom forming around the $100k support level.
In its report, Glassnode pointed out that the recovery towards the $106k resistance level suggests early signs of buyer re-engagement. Spot Bitcoin trading volume surged from $11.5 billion last week to $14.1 billion on Monday, suggesting strong investor participation and heightened liquidity.
BTC could dip below $104k if the bullish trend fails to build
The BTC/USD 4-hour chart is bearish and efficient as Bitcoin has found support around the 50% Fibonacci retracement level of $100,353. The support was established on November 4 and could serve as the springboard for BTC to rally higher.
If Bitcoin’s daily candle closes above the 38.2% Fibonacci retracement at $106,453, it could rally higher and hit the 50-day Exponential Moving Average (EMA) at $110,041 in the near term.
The RSI of 58 on the 4-hour chart shows that the bullish momentum is gaining traction. The MACD lines also converged into the bullish zone, flashing a buy signal for traders.
However, if Bitcoin’s correction continues and the daily candle closes below $106,453, BTC could extend the decline toward the key support at $100,353.
